# Zotefoams reports record FY2025 profits and margin growth

- Link: https://www.directorstalkinterviews.com/zotefoams-reports-record-fy2025-profits-and-margin-growth/4121244895
- Published: 2026-03-17T07:14:19+00:00
- Author: Amilia Stone

**Zotefoams plc** (LON:ZTF) has announced its preliminary results (unaudited) for
the year ended 31 December 2025

**“Continued growth and margin progression delivered another year of record profitability
as we execute on our long-term growth strategy”**

**Financial Headlines**

|  | ** ** | ** ** | **Group** | ** ** | 
|  | ** ** | **2025** | **2024** | **Change** | 
|  |  | £m | £m |  | 
| Revenue |  | 158.5 | 147.8 | 7.2% | 
| Gross profit |  | 52.9 | 46.1 | 14.8% | 
| Adjusted Operating profit^(1) |  | 22.8 | 18.1 | 26.0% | 
| Adjusted Operating Margin |  | 14.4% | 12.2% | 220bps | 
| Adjusted Profit before tax |  | 21.2 | 15.3 | 39% | 
| Adjusted Basic EPS |  | 38.0p | 25.95p | 46% | 
| Final dividend^(3) (p) |  | 5.35 | 5.10 | 5% | 
| Operating profit |  | 21.6 | 3.0 | 620% | 
| Profit before tax |  | 20.0 | 0.2 |  | 
| Cash generated from operations |  | 39.7 | 30.4 | 31% | 
| Net debt Covenant Basis^(2) |  | 31.5 | 24.1 | 31% | 
| Net debt (IFRS) |  | 43.0 | 33.0 | 30% | 
| Leverage ratio^(2) |  | 0.8 | 0.9 |  | 
| ROCE |  | 13.9% | 11.7% | 220bps |

^(1) This is a reported number under UK-adopted IFRS and is after adding back MuCell
closure costs £0.9m (2024: £15.2m) and amortisation of acquired intangibles of £
0.2m (2024: £Nil)

^(2) Leverage is that defined under the bank facility, with net debt at the end 
of the period divided by the preceding 12 months’ EBITDA, adjusted for the impact
of IFRS 2 and IFRS 16

^(3) Final dividend is subject to approval at the May 2026 Annual General Meeting

**Results Headlines**

| · | Record Group revenue of £158.5m, 7% higher than the prior year (2024: £147.8m) | 
| · | Record adjusted operating profit up 26% to £22.8m (2024: £18.1m) | 
| · | Adjusted Basic EPS up 46% to 38.00p (2024: 25.95p) | 
| · | Strong cash generation and balance sheet foundation to support ongoing investment and refreshed growth strategy | 
|  | – Cash generated from operations up 31% to £39.7m (2024: £30.4m) | 
|  | – Cash conversion at 101%, with FCF of >£23m | 
|  | – ROCE up 220bps to 13.9% (2024: 11.7%) | 
|  | – Net debt excluding leases up 31% to £31.5m (31 December 2024: £24.1m) due to financing of the acquisition of Overseas Konstellation Company S.A. (“OKC”). | 
|  | – Leverage ratio improved at 0.8x (31 December 2024: 0.9x) providing substantial investment headroom. | 
|  | – Final dividend up 5% to 5.35p (2024: 5.10p) |

**Strategic Progress**

| · | The Group is continuing to deliver on its _Expanding Beyond the Core_ strategy aimed at driving long term sustainable growth and shareholder value creation | 
| · | Through increased focus on operation execution, the expansion of geographical footprint, investment in innovation and building a disciplined M&A capability, the Group is targeting ambitious progress in the medium term: | 
|  | – Organic growth of 7% CAGR to deliver FY2029 revenue of >£230m | 
|  | – Operating profit of >£40m by FY2029 | 
|  | – ROCE of over 20% by FY2029 | 
|  | – Cash conversion of >95% | 
| · | Longer-term ambition to grow revenues to >£300m and operating profit to >£60m, with the opportunity to accelerate progress through inorganic growth | 
| · | Key initial enabling steps for this transformation were taken in FY2025: | 
|  | – Construction of machinery for new Vietnam factory well progressed with £4.3m invested | 
|  | – Completion of new second low-pressure vessel in the US which is now operational | 
|  | – Innovation centre established in Korea with growth and investment planned for 2026 | 
|  | – Acquisition of OKC, extending products, capabilities and routes to market in Europe | 
| · | Early progress and momentum in 2026: | 
|  | – Trading in line with expectations and continued strength in Transport & Smart Technologies | 
|  | – OKC integration progressing well, with integration into the European operating model underway and full-year revenue contribution in 2026 | 
|  | – Growth becoming more balanced across the portfolio, with healthy pipelines in aerospace, industrial and other technical applications | 
|  | – Continued focus on execution in 2026, including service, efficiency, margin improvement and delivery of strategic investments in Asia |

> **Ronan Cox, Zotefoams Group CEO, said:**
> “We have entered 2026 with good momentum. Trading in the early part of the year
> has been in line with our expectations, supported by continued demand in Transport&
> Smart Technologies and improving order books across several markets. We are also
> benefiting from the initial contribution of OKC, where the integration into our
> European operating model is progressing well.
> “As anticipated, demand patterns across our markets are becoming more balanced
> following a period of exceptional growth in Consumer & Lifestyle. In footwear,
> we expect volumes to moderate from the unusually high levels experienced in 2024
> and 2025 as customers normalise inventory positions which is an expected transition,
> and our operating plans reflect this shift. Importantly, our exposure across other
> market verticals continues to strengthen, with healthy pipelines in aerospace,
> industrial and other technical applications providing a broader base for growth.
> “Operationally, our focus in 2026 is on execution and delivery. This includes 
> building and maintaining strong service levels, managing capacity carefully across
> the network, and continuing to improve operational efficiency and margins. We 
> will also progress our major strategic investments, particularly in Asia, ensuring
> that new capacity and innovation capability are delivered safely, on time and 
> within approved investment parameters.
> “Looking further ahead, we are increasingly confident that the Group’s medium‑
> term prospects are in line with our stated ambitions. The strategic progress made
> over the past two years – transitioning to a market‑led organisation, expanding
> our geographic footprint, investing in innovation and building a disciplined M&
> A capability – has materially strengthened the business. Zotefoams is now more
> diversified by market, geography and customer, with a clearer right‑to‑win in 
> high‑value applications and a more resilient operating platform.
> “Our medium‑term objectives remain unchanged. We continue to target sustained 
> revenue growth, backed by strong margins and ROCE, with cash generation supporting
> a disciplined capital allocation strategy focused on value creation. We have made
> good progress down this path in 2025, executing well in the business and identifying
> opportunities to accelerate strategically. The acquisition of OKC enhances both
> our growth profile and our strategic optionality, while our investments in Asia
> and innovation position the Group for the next phase of development.
> “While we remain mindful of ongoing macroeconomic and geopolitical uncertainties,
> we are confident that Zotefoams is well positioned to navigate these challenges.
> We have a clear strategy, a strengthened leadership team, well‑invested assets
> and a strong financial position. The progress delivered in 2025 provides confidence
> that we have both the capability and the discipline to continue delivering sustainable
> growth and long‑term value for all stakeholders.”

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